The most recent Discussion Forum Topics from AccountancyStudents

revaluation model problem

2011-09-16T09:50:14+00:00

if the cost of a building is 100,000 and in year one the revaluation is 200,000, then in second year the revaluation is 70,000. so how to record the entry for the end of year two by using revaluation model?? thx

need help cima or acca

2011-09-11T20:43:17+00:00

iam quit confusing about which one shall i choose CIMA OR ACCA, trust me iam no where to go, please if you now better give me idea, i need whcih one is easier, which one i can finish soon,

iam looking forward you respond

thanks

need help

2011-09-07T21:46:03+00:00

i would like to know. if the exam of CIMA is based by computers,or also you can do by paper exams,which one you can do, or can i do one of them. please help me if you can, iam going to start soon

thanks

iam looking forward your respond

Revaluation, Depreciation & Retained earnings

2011-08-20T19:13:45+00:00

Hi everyone=)

I have a question concerning accounting for Revaluation Reserve and Retained Earnings when we have revalued asset. F.ex.
Asset bought on 1 Jan 2001 for 100 000. Depr: straight line method (pro rata), useful life: 5 yrs

1 Jan 2002: SFP: NCA 100 000
Acc Depr 20 000
Depr charge for 2001: 20 000
1 Jan 2003: NCA revalued to 130 000

SFP: NCA 130 000 Revaluation Reserve 70 000
Depr Charge for 2003: 43 333
1 Jan 2004: SFP: NCA 130 000 Revaluation Reserve: 46 666 = (70 000 - 23 333)
Acc Depr 43 333 Retained Earnings: Profit/(loss) from IS(y2003) + 23 333
Depr Charge for 2004: 43 333
1 Jan 2006: SFP: NCA 0 Reval Reserve 0
Acc Depr 0 Retained Earnings: Profit/(loss) from IS(y.2005) + 70 000
at 31 Dec 2005 we dispose NCA as follows:
Cr. NCA 130 000
Dr. Accumulated Depr. 130 000

But how we treat Retained earnings? Should 70 000 stay on SFP forever or do we write it off? if yes, then could you show how?

need help

2011-08-17T00:25:07+00:00

iam strugling in this question, is there anyone out there who can help me for this question, plz help me, and the answer is down there, but i dont know, how did they get the answer

Rose and Ivy, sharing profits in the ratio 2:1 respectively, and finalising annual accounts on 31st December, admit Libby for a fourth share of profit on 1st March 2009. Until Libby’s admission the balances in the Capital accounts of Rose and Ivy were £300,000 and £200,000 respectively. Libby introduced £200,000 as capital. Their partnership agreement provides for a salary to Rose of £2,000 per month and interest on capital at 6% per annum. Apart from the adjustment to profit sharing ratio other terms of the agreement are to continue after the admission of Libby. Profit for the year ended 31st December 2009 was £480,000 and it may be assumed to have accrued consistently throughout the year. Identify the share of profit each partner would be entitled to in each of the following alternative scenarios.
b) If goodwill, not appearing in the books, is valued on Libby’s admission at £300,000, and should be adjusted for, but is not to appear in the books

answer, Rose: £264,333; Ivy: £123,167; Libby: £92,500

thanks

need help how to calculate depreciation

2011-08-19T00:49:21+00:00

please if you know how to calculate depreciation, plz help for this

Trail balance as 31:12:2008
furniture at cost 280,000
Acc.depreciation 112,000

motor vehicle at cost 240,000
Acc.depreciation 72,000

1) furniture and vehicle are to be depreciated at 10percentage and 20percentage per annum, respectively, using the straight line method

answere

depreciation vehicle 48000
depreciation 28000

need help

2011-07-30T09:12:42+00:00

Please would anyone mind if u help me , how did they get disposal and acquisition .

22.13: Non-current assets of a company were reported on its Balance Sheets as shown below.

Identify the cash outflow on acquisition and inflow from disposal in each of the following independent scenarios.

a) A machine acquired for £120,000 and depreciated by £32,400 was sold in the year for £68,000.

Correct Answer:
Outflow on acquisition: £59,800; Inflow upon disposal: £48,400

Cash outflow on acquisition is identified as shown on the right and the cash inflow from disposal is stated in the question as £68,000.

i need a help

2011-07-28T10:29:52+00:00

hi iam struggling this question, the answer is there, but it is complicated to understand, so if you know a way which is more easiest, in down, how did they get that 200,000, please help me

22.9: On 1st April 2007, a company had in issue £300,000 6% Loan Notes and redeemed a third of these on 30th June 2007 paying a premium of 10%. It pays interest on Loan Notes half yearly in arrears on 30th June and 31st December. Identify the cash outflow in respect of interest during the year ended 31st March 2008.

Correct Answer:
£15,000

Interest expense during the year is calculated as 6% of £300,000 for three months (£4,500) plus 6% of £200,000 for nine months (£9,000) amounts to £13,500. Interest in arrears on 1st April 2007 would be (6% of £300,000 for three months) £4,500 and as at 31st March 2008 would be (6% of £200,000 for three months) £3,000. Accordingly, interest paid in the year (see account shown below) is £15,000.

last years F1 & F2 study guides for this years exams? Advice please!

2011-07-28T15:26:05+00:00

Does anybody know whether there will be any important updated information in the 2011 study guides which will be lacking or different in those for 2010?

Thanks!

need help

2011-07-20T10:48:12+00:00

hi Goodmorning

plz help me if you know how to calculate this question, becouse , iam quity confuse about it

Non-current assets have been reported on the Balance Sheets as shown below. A new asset had been acquired for £120,000 and depreciation of £38,000 written off. An asset was disposed of for £10,000. Identify the gain (G) or loss (L) on the disposal

As at 31 march 2007 2008
non-current assets at cost £498,000 £594,000
accumulated depreciation £74,200 £98,600

thanks